The MYLIE Group Real Estate Team shares the latest news for London, Ontario this May
Hello and Happy June!
We hope everyone is enjoying the warm sunny weather! Are you thinking that it might be a good time to buy or sell a home? If so, here is recent local real estate news for the London-St. Thomas area.
In May 2022, 1,835 new residential listings were posted on the MLS® System of the London and St Thomas Association of REALTORS® (LSTAR), more than in any previous May in the Association’s history. The local housing supply increased from only 1.2 months of inventory in April to 1.7 months of inventory in May.
Sales, on the other hand, were more on par with those from the former decade, with only 844 homes exchanging hands last month in LSTAR’s jurisdiction. Out of the 844 units sold last month, 635 were single-family homes, 105 – condo townhouses, and 65 – apartments.
Is real estate in Ontario headed towards a buyers market?
“Even if in May the sales-to-new listings ratio dropped to 46%, a figure that, typically, indicates a market that tends to favour home buyers, benchmark and average prices saw only modest month-over-month declines,” said Randy Pawlowski, 2022 LSTAR President. “Compared to last year’s figures, both of these values are substantially higher,” he added.
In May, the average price for a single-family home in LSTAR’s jurisdiction stood at $818,977, that of a condo – at $605,333, and the overall average price for an apartment – at $465,364. Similarly, LSTAR’s overall average home price decreased from $771,682 in April to $762,397 in May. Compared to the same period last year, this figure is 19.5% higher.
Ontario’s population saw a net increase of 34,074 towards the end of '21
“One of the reasons why we are witnessing this level of stability is the change in population from migration and immigration. Only in the fourth quarter of 2021, Ontario’s population saw a net increase of 34,074 people. Many of these new Ontarians are now looking to buy homes they can afford in regions with good schools and hospitals. And, as it happens, our area checks all these boxes.” Pawlowski explained.
“Aside from the growing population, the existing housing supply is another factor that puts upward pressure on the local home prices. While the months of inventory saw slight increases, they are still at lower-than-usual levels. Normally, a healthy inventory should sit at around 3.5 or 4 months,” Pawlowski said.
If you are thinking of building, selling, or buying a home or an investment property, please call us. There are important details to know about the moving process in this time of interest rate and inventory number changes and we would be happy to delve into some of the variables with you. Let’s discuss how we can help you take advantage of the current market opportunities.
Contact us via text or phone at 519.694.2426.
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